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The following table presents an incremental analysis that has not been completed, assume that the MARR is 10% per year and that the useful life

The following table presents an incremental analysis that has not been completed, assume that the MARR is 10% per year and that the useful life for each alternative is 6 years, equal to the study period. To evaluate the alternatives, they have been arranged in ascending order with respect to the initial investment:

Do nothing A C B. According to the following table, select the best answer.

On your worksheet you will need to show how you calculated the missing ROR value in the table to get credit

A--> Do nothing C-->A B-->C
Capital investment -$15,000 -$2000 -$3,000
Annual income 4,000 900 460
Annual costs -1,000 -150 100
Residual value 6,000 -2,220 3,350
ROR 12.7% 10.9% ???

Select one: a. Alt. B b. Alt.A c. Do nothing d. Alt. C

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